When it comes to renting commercial property, the lease agreement is far more than just paperwork – it’s the foundation of the relationship between tenant and landlord and needs careful consideration to protect the rights of both parties.
While the Rental Housing Act governs residential leases, no specific legislation covers commercial rental contracts. Instead, these agreements fall under general South African contract law, which requires mutual agreement, lawful purpose, and contractual capacity.
“Commercial leases can be complex, and because they aren’t governed by a specific piece of legislation like residential leases, every clause carries significant weight,” explains Alison Laxton, Associate Attorney at SBL Incorporated. “Both parties need to understand what they’re signing, as these agreements can have long-term financial and operational implications.”
For more information, click here.
